Klöckner & Co has approved the acquisition of Industrial Manufacturing Services (IMS) through its U.S. subsidiary, Kloeckner Metals Corporation (KMC). This transaction represents another pivotal step in realizing Klöckner & Co's corporate strategy, "Klöckner & Co 2025: Leveraging Strengths," in which the company continually expands its product and service portfolio along the value chain towards its customers.
Within the framework of this strategy, Klöckner & Co aims to broaden its fabrication capabilities, leveraging the profitable fabrication business and reducing its dependence on fluctuations in steel prices. The IMS acquisition aligns perfectly with this strategy. The parties have agreed to keep the purchase price and other details confidential. The consolidation of these businesses will commence at the start of November 2023.
Guido Kerkhoff, CEO of Klöckner & Co SE: "The acquisition of IMS is the second significant transaction in just a few months which will accelerate the expansion of our product and service portfolio in line with our corporate strategy ’Klöckner & Co 2025: Leveraging Strengths’. We intend to become the best vertically integrated supplier for OEMs in North America."
John Ganem, CEO of Kloeckner Metals Corporation: “Today we are taking another milestone in transforming KMC. We will significantly expand our metal fabrication business along our customers' value chains. In addition, IMS will add unrivaled expertise in welding and finished parts manufacturing to our unique product portfolio.”
IMS, headquartered in Lancaster, South Carolina, USA, offers fabrication, welding, assembly, and just-in-time warehousing of light to medium-sized sub-assemblies to OEMs in the heavy machinery industry. KMC plans to capitalize on this growth opportunity, attract new customers in the market, and further cultivate existing relationships with OEMs.
Moreover, this acquisition equips KMC to integrate IMS's strong welding and finished parts manufacturing expertise into its existing service portfolio and implement it across other KMC facilities throughout North America. Consequently, KMC will significantly bolster its leading position within the market and differentiate its offerings further from competitors.
